Indian Markets Hold Steady Amid Consolidation; Foreign Inflows Provide Support

In a day marked by consolidation, Indian equity markets exhibited resilience on Wednesday following a robust rally spurred by the India-US deal. The Nifty 50 index started at 25,997.45, up by 62.30 points or 0.24%, while the BSE Sensex commenced at 84,339.15, rising 65.23 points or 0.08%.

Experts indicate that despite the indices' range-bound movement, the overall market trend remains supportive. Ajay Bagga, a banking and market expert, emphasized the benefits of softer US yields on emerging markets like India by alleviating pressure on the rupee. Nevertheless, global narratives, particularly AI-related threats in financial sectors, may impact Indian IT and banking stocks if investor sentiment sours.

The broader indices also saw gains: Nifty 100 increased by 0.25%, Nifty Midcap 100 by 0.13%, and Nifty Smallcap 100 by 0.18%. Sectoral indices rose as well, with significant hikes in Nifty Auto and Nifty FMCG. Amidst positive foreign and domestic institutional inflows, market stability is further strengthened as the rupee remains stable and macroeconomic conditions provide comfort. Meanwhile, other Asian markets traded positively, while US markets experienced declines.